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Kaori Heat Treatment Co., Ltd. (8996.TW) ("Kaori" or the "Company") today marked a significant milestone in its growth journey with the groundbreaking of its new manufacturing facility at Qiaotou Science Park in Kaohsiung, Taiwan. The ceremony, led by Chairman Chih-Hsiung Wu and the Company's management team, was attended by government officials and industry partners, underscoring Kaori's commitment to expanding its manufacturing footprint and supporting future growth opportunities. With a planned investment of up to NT$3.25 billion, the Qiaotou facility represents the largest capital investment in Kaori's history and will become the Company's flagship manufacturing hub. Upon full build-out, the site's total production capacity and footprint will surpass those of all existing facilities combined, significantly strengthening Kaori's ability to support long-term growth and capture emerging opportunities in AI infrastructure and energy-transition markets.

"Qiaotou Science Park marks a transformational milestone for Kaori and underscores our confidence in the Company's future growth trajectory," said Chairman Chih-Hsiung Wu. "As the global transition to sustainable energy accelerates and demand for high-performance AI computing infrastructure continues to expand, Kaori is well positioned to capitalize on these powerful secular trends. We will continue investing in advanced technologies, manufacturing excellence, and capacity expansion to deliver innovative thermal management and energy solutions that create long-term value for our customers, shareholders, and stakeholders."

The Qiaotou facility spans approximately 4.69 hectares and will be developed in multiple phases. Phase I, launched with today's groundbreaking ceremony, encompasses approximately half of the total site area. To address growing demand from the energy-transition and AI sectors, Kaori will prioritize the establishment of manufacturing lines for next-generation thermal management solutions and energy-related products, further enhancing its production capabilities, operational scale, and global competitiveness.

The project is being executed in collaboration with the Southern Taiwan Science Park Bureau, Cheng Yu-Chin Architects & Associates, and Ding Cheng Construction Co., Ltd., with full completion targeted by the end of 2028. Given robust customer demand and a strong order pipeline, however, the Company is evaluating a phased commissioning approach that could enable production to commence as early as 2027, allowing Kaori to accelerate capacity deployment and support market growth more effectively.

Beyond expanding manufacturing capacity, the new facility serves as a cornerstone of Kaori's ESG strategy and long-term sustainability commitment. Designed in accordance with green-building standards, the plant will incorporate rooftop solar photovoltaic systems and renewable energy sources to reduce operational carbon emissions. The campus will also feature extensive green spaces and ecological landscaping designed to promote environmental stewardship and biodiversity.

The project is expected to generate hundreds of local employment opportunities upon completion, while fostering supply-chain development and strengthening Southern Taiwan's advanced manufacturing ecosystem.

The groundbreaking of the Qiaotou facility marks the beginning of a new phase of growth for Kaori. As a strategic manufacturing and innovation hub, the site will support the Company's core businesses in heat exchangers, thermal management solutions, and fuel cell technologies. By expanding its global production capabilities and deepening collaboration with industry partners, Kaori aims to strengthen its market leadership and contribute to the advancement of a more sustainable and energy-efficient future.

【Media Contact】
Spokesperson
Gilbert Wu General Manager
Tel:886-3-4527005# 325
gilbert_wu @kaori.com.tw

Public Relations
Sunny Chen Manager
Tel:886-3-4527005#213
sunny_chen@kaori.com.tw